For 2018, Gary Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information: Estimated manufacturing overhead $350,000 and Estimated Machine-hours 70,000 hours and estimated labor hours 20,000 hours. Company uses 500 machine hour in Job 120 and 700 machine hour in Job 130. The applied manufacturing overhead for Job 130 is: a. $7,500. b. $3,500. c. $10,500. d. $2,500.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?